Certus to pitch for mortgage business

BANKING WORK-OUT firm Certus plans to pitch for the contract to service tracker mortgages moved from Permanent TSB and AIB if the Government proceeds with this plan in the next restructuring of the State-controlled banks.

Joe Higgins, chief executive of Certus, which is running down the Bank of Scotland (Ireland) loans for UK bank Lloyds and assisting AIB on mortgage arrears cases, said the firm already services large tracker mortgage portfolios, including performing loans and loans which are in arrears.

The firm was “ideally placed to service such a book” if the tracker loans are removed, he said.

“We have the advantage of being able to focus solely on working constructively with customers who are in difficulty to get the best result for all concerned.”

Certus has appointed former politician Pat Cox and Liam Young, the former chief executive of directory enquiries firm Conduit, as advisers to help the company land new banking contracts.

Mr Higgins said that Mr Cox, a former European Parliament president, would help target potential contracts through the Irish and European government sectors.

“Bringing somebody with experience of operating and who knows their way around that government sphere was beneficial,” said Mr Higgins.

Mr Young has dealt with large public companies and tendered for their business, which would be beneficial to Certus, added Mr Higgins.

Certus, which is run by former senior managers at BoSI, was set up in 2010 after part-nationalised British bank Lloyds decided to exit the Irish market and run down the €29 billion former BoSI loan book.

The company secured a second contract with AIB in January to help the State-controlled bank work with distressed borrowers in its €26 billion mortgage business.

Mr Higgins sees further contracts for Certus in the Irish banks. “There is that much change going on and so much additional demands on the banks that they are struggling to resource themselves – that is where we are going to get opportunities in the short term,” he said.

He sees contracts to provide services to institutions such as Irish Bank Resolution Corporation, the former Anglo Irish Bank, and the National Asset Management Agency as they reduce in size as they wind down, he said.